July 09, 2020

Oklahoma Hospital, Others Agree to $77 Million Fraud Settlement

The Oklahoma Center for Orthopaedic and Multi-Specialty Surgery in Oklahoma City and others will pay $77.2 million to resolve allegations that they violated the FCA by engaging in a kickback scheme, the DOJ announced on July 8. The other defendants are USP OKC Inc., USP OKC Manager Inc., Southwest Orthopaedic Specialists PLLC (SOS), and two physicians. The defendants allegedly defrauded federal healthcare programs under a scheme whereby Oklahoma Center and USP provided improper remuneration to SOS in exchange for patient referrals. SOS allegedly received free or below-fair market value office space and supplies, excessive compensation for services, and preferential investment opportunities under the scheme. Oklahoma Center and SOS have entered into five-year corporate integrity agreements with HHS.